Leroy Smith is extolled as a hero for freeing New York from the clutches of gangs. When he finds out that the Mishima Zaibatsu was the ringleader behind the war that tore the city apart half a century ago, he decides to participate in The King of Iron Fist Tournament with the sole purpose of taking them down.

Then Heihachi Mishima, the head of the Mishima Zaibatsu, suddenly disappears. G Corp takes advantage of this situation and overthrows the Mishima Zaibatsu. G Corp continues its invasion, and soon the whole world will be ruled by its iron fist. After learning that Heihachi's son, Kazuya Mishima, is the leader of G Corp, Leroy and his dog, Sugar, know what they must do to restore peace in the world.